Sales of American farm goods to Cuba surged in 2007 to their highest annual total in the seven years since the communist-run nation began buying the products in 2001, a US trade group said Friday.

Cuba bought US$437.5 million (€297.2 million currently) in US food and other agricultural goods in 2007, making the island America's 37th largest trading partner last year, the New York-based US-Cuba Trade and Economic Council said in a regular report.

Direct sales of US farm goods to Cuba lagged over the two previous years, to US$340.4 million (€258 million) in 2006 and US$350.2 million (€296 million) in 2005, said the council, which tracks trade between the two countries.

US$600 million in goods

The Cuban government reported last month it bought US$600 million (€407.7 million) in goods from US companies in 2007, including costs for transportation, banking and other related charges.

The US council counts only the price of the goods.

Washington's nearly 50-year-old embargo prohibits almost all US trade with the island. But a US law passed in 2000 allows American companies to sell food and agricultural products directly to Cuba on a cash basis.

Cuban authorities initially refused to buy any American goods under the law, complaining about the cash-only restriction. But they changed course after a hurricane struck the island in late 2001 and bought goods to replace depleted food reserves.

- AP

TAKEN FROM THE FINANCIAL GLEANER, FRIDAY, FEBRUARY 22, 2008